Originally posted on Gigaom:

With everything moving to the cloud, companies suddenly find themselves confronted with a whole new set of challenges. For example: Is all that stuff even legal? “There is a good chance that almost every organization that is out there that is using Dropbox or that is using Box is breaking the law,” proclaimed Puppet Labs CEO Luke Kanies (see disclosure) during the last panel of the day at GigaOM’s Structure conference Thursday.

Kanies wasn’t out to scare people, but he had a point: Most companies don’t even have internal rules for the use of data with cloud services, save for a clear understanding of the law. Fellow panelist and enStratus VP of Product Strategy James Urquhart agreed, pointing out that courts have yet to decide whether Fourth Amendment rights apply to documents saved in the cloud.

But legal issues like these are only one of the challenges facing companies as…

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